UPI is now widely available for various services, from big corporations to small roadside shops and even large government organizations. The use of UPI for online payments has become increasingly popular. However, banks have been requesting UPI transactions to be charged a small service tax for transactions above a certain amount per month. Currently, a fee is charged for remittances over Rs. 2000 through PPI. If a shopper makes a payment through prepaid mode, a fee of 0.5% to 1.1% will be charged, varying by sector-wise transactions. This fee only applies to commercial transactions, and if paid through a wallet, the merchant will bear the additional fee. Although the fee is not directly charged to the public, there’s a chance that indirect payment for this fee will be collected in the future. These regulations have been implemented following the banks’ demands for UPI charges.
Services
UPI is now available for all kinds of services. From big corporations to even ordinary roadside shops, UPI has come. Similarly, even large government organizations have started using UPI. On the other hand, all online payments now offer UPI services. People have also started liking the use of UPI a lot.
fee
In this situation, banks have been demanding for UPI transactions for the past few days. A small amount of service tax is also levied on this. A deduction is made from the bank for transactions exceeding a certain amount per month. It is at this stage that the transaction fee is currently charged. It has been reported that remittance of business transaction through UPI in PBI mode will be charged. This fee is applicable for remittances above Rs.2000 through PPI.
UPI
According to this, if a shopper makes a payment through prepaid mode, i.e. wallet mode or prepaid card mode, a fee of 0.5 percent to 1.1 percent will be charged. Some people are paying through wallet right now. Fees paid through this wallet will be charged a maximum of 1.1 percent. This fee will vary by percentage for sector-wise transactions. 0.5% for fuel, 0.7% for telecom, postal, education, agriculture, 0.9% for supermarket, 1% for mutual fund, government, insurance, railways.
fee
This applies only to commercial transactions. If a customer pays through a wallet, this additional fee will be collected from the merchant. No money will be taken from the public. But there are chances that indirect payment for this fee will be collected from public in coming days. Although the fee is collected directly from the shopkeeper, the service charge is indirectly charged for this. For the past few days, banks have been demanding to charge UPI transactions. Following this, NBCA has implemented these regulations.